BLAW 243- PP 24 Employment Law- Exam 3

Private Pension Plans

"Pension Benefit Guaranty Corporation" - independent federal agency created through ERISA legislation -GOAL: to provide "timely and uninterrupted" payment of private pension plan benefits

Medicare Eligibility

- 65 years or older - Under 65 IF you have certain disabilities - Additional categories

Social Security: Employees

- Paycheck is TAXED at 6.2% - Max taxable earnings cap: $128,700

Unemployment Compensation : Who is eligible?

- those who have lost jobs due to no fault of their own - must meet requirements for wages earned or time worked during a one-year period - must claim benefits within x months of loss of job - must remain willing, able and available to work - you must actively search for work OR pursue education or training

How is Medicare Funded?

-Both employee and employer MUST contribute each pay 1.45% self-employed pays 2.9% -There is no"cap" ceiling for wages taxed- your ENTIRE modified adjusted gross income (MAGI) is taxed - High income earners must pay an additional tax on all earnings over $200,000 (employer DOES NOT PAY this)

Private Retirement Plans

-Employers are NOT REQUIRED to establish private retirement plans (like pension plans, 401K plans) BUT - IF an employer establishes a private retirement plan, the plan MUST comply with federal act (law) called "ERISA" (employee retirement income security act)

Unemployment Insurance: Where does the money come from?

-Employers that are covered are taxed - Self-employed individuals are usually not entitled to unemployment benefits UNLESS their business paid unemployment tax

Medicaid

A state program (rules vary by state) - eligibility: generally for low income individuals

A company may monitor the electronic business communications of an employee made via the employer's e-mail system without violating the employee's privacy rights EVEN IF the employer DOES NOT INFORM the employee of the monitoring. A. True B. False

A. True

All employers are required to provide retirement plans. A. True B. False

B. False

You are an employer who is very concerned about ensuring that employees use electronic communications in a proper manner. Can you require employees to sign CONSENT forms that permit you to monitor BOTH their personal and business related electronic communications? A. Yes B. No

B. No

Yong is employed by Fickle Corp. Who pays into the social security system to make sure Yong is eligible to receive benefits when he is 66? A. Yong B. Fickle Corp C. Both Yong and Fickle Corp.

C. Both Yong and Fickle Corp.

Employer Failure to Comply with HIPAA

Civil Penalties - up to $25,000/year Criminal Penalties - up to $250,000 in fines -imprisonment for up to 10 years

Private Retirement Plans and ERISA

ERISA = management standards for private retirement plans - record-keeping - investment of funds - vesting (most common rules are below) - pension benefit guaranty corporation

COBRA

Entitles employee who has lost job to continue health care coverage under the employer's health plan for up to 18 months Employee MUST PAY ALL health plan premiums

Lie Detector Test for Public Employers

Exempt from EPAA and may require lie detector tests

How is the SS system funded?

Federal Insurance Contributions Act - mandatory contributions: both employers and employees must contribute - self-employed persons must also pay the tax

Income Security

Federal and/or State Insurance Programs that help employees (and families) during critical life changing events: - retirement - disability - death - hospitalization - unemployment

Medicare

Federal health insurance program

Social Security

Federal program that provides retirement benefits, survivors' benefits, and disability insurance.

Employee Privacy Rights and the First Amendement

First Amendment Free Speech protection ONLY applies to Government Employees - Private Employers MAY restrict access to websites

Drug Testing: Public Employers

Fourth Amendment to the U.S. Constitution applies and prohibits "unreasonable searches" so drug testing is limited By federal statute, drug testing IS permitted in limited circumstances including: -Transportation industries -Drug use in job threatens public safety - If there is a "reasonable basis" to suspect the government employee is using drugs.

Employer-Sponsored Group Health Plans and HIPAA

HIPAA- Health Insurance Portability and Accountability Act - establishes administrative requirements employer health care plans must meet AND - mandatory policies and procedures to protect privacy and security of employee's private health information

Drug Testing: Private Employers

Is governed by State Law - Generally testing must simply be "reasonable" - random tests are ok

Social Security: Employer

Matches the tax paid by the employee

Employee Privacy Rights

More than 50% of all employers engage in employee surveillance

Lie Detector Tests

Most private employers with 2+ employees and $500,000 in business are NOT PERMITTED to require or request employees take lie detector test UNLESS - security companies - companies that manufacture and distribute controlled substances - employers who are investigating thefts

Self-Employed

Must pay self-employment tax to fund SS - 12.4% tax on all earnings up to "wage base"

Medicare Basic Program

Part A- Hospital Insurance - automatic for most people if individual or spouse worked (paid for by medicare taxes) Part B- Medical Insurance: - must pay additional premium Part C: Medicare Advantage: - permits you to opt to receive all your healthcare services through a provider organization - you must opt in, and most plans require you to PAY Part D: Prescription Drug Coverage - you must opt in; plans are paid for by monthly premiums

Employee Privacy Rights

Privacy Protection for employees of private employers - some protections for employees exists under Tort law State Constitutions State and Federal Statutes

Electronic Communications Privacy Act

Prohibits interception and disclosure of wire, oral, or electronic communications without employee consent

Business-Extension Exception

States that ECPA does not apply to communications through devices owned or provided to the employee for business use

Unemployment Insurance

Unemployment insurance is a system created by the FUTA and administered by the states - Benefits, eligibility requirements, and length of time during which you can collect benefits vary by state

Social Security Eligibility

You must earn credits - Number of credits required for eligibility varies with age and type of benefit, but MOST people need 40 credits to qualify for Social Security Benefits - As of 2018, every 41,320 in earnings earns (1) credit. You can earn a MAX of 4 credits per year.